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03
Jun
2019

Pay & Retain Collateral Without Reaffirmation

In this case, the Bankruptcy Court held that a Chapter 7 debtor, who was not in default under the obligations of a consumer loan agreement, was not limited to redemption, reaffirmation, or surrender of the collateral.

Here, in the Matter of Windham (Bkrtcy.M.D.Fla., Judge Thomas E. Baynes, Jr.), the court held that a Chapter 7 debtor could keep his vehicle pledged as collateral to the creditor, even though the debt was not reaffirmed, redeemed or surrendered to the creditor.

Instead, the debtor could retain the collateral and continue to pay under the original obligation until the full amount due was paid.

In addition, the court concluded that Chapter 7 debtors may not void any portion of liens on real or personal property, other than by paying the contractual amount of the debt.

Charles R. Harroun, Attorney at Law



This entry was posted on Monday, June 3rd, 2019 at 4:32 am and is filed under Bankruptcy, Secured Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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